System for providing offers using a billing statement

ABSTRACT

A billing statement according to one aspect of the invention includes a description of a transaction and an offer pointer associated with the transaction, wherein the offer pointer includes information that may be used to review an offer. In one example of this aspect, a telephone number or a hyperlink is provided adjacent to a total amount owed listed on a statement (e.g., an electronically-displayed billing statement). The offers reviewed may be customized, for example, based on details of the transaction such as the product purchased or the amount of the purchase, the identity of the consumer, and/or on other data.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation of U.S. patent application Ser. No.13/237,532 filed Sep. 20, 2011, for “SYSTEM FOR PROVIDING OFFERS USING ABILLING STATEMENT”; which is a continuation of U.S. patent applicationSer. No. 12/130,126 filed May 30, 2008, for “SYSTEM FOR PROVIDING OFFERSUSING A BILLING STATEMENT”; which is a divisional of U.S. patentapplication Ser. No. 11/456,393 filed on Jul. 10, 2006 and nowabandoned; which is a continuation of U.S. patent application Ser. No.09/855,300, filed May 15, 2001 and now abandoned; which:

(i) claims the benefit of U.S. Patent Application No. 60/204,330, filedMay 15, 2000, for “COST AVOIDANCE ON CREDIT CARD STATEMENTS”; and

(ii) is a Continuation-in-Part of U.S. patent application Ser. No.09/100,684, filed Jun. 19, 1998, for “BILLING STATEMENT CUSTOMERACQUISITION SYSTEM”, which issued as U.S. Pat. No. 6,898,570 on May 24,2005; and

(iii) is a Continuation-in-Part of U.S. patent application Ser. No.08/994,426, filed Dec. 19, 1997, for “METHOD AND APPARATUS FOR PROVIDINGSUPPLEMENTARY PRODUCT SALES TO A CUSTOMER AT A CUSTOMER TERMINAL” whichissued as U.S. Pat. No. 6,694,300 on Feb. 17, 2004; and

(iv) is a Continuation-in-Part of U.S. patent application Ser. No.08/982,149, filed Dec. 1, 1997, for “METHOD AND APPARATUS FOR PRINTING ABILLING STATEMENT TO PROVIDE SUPPLEMENTARY PRODUCT SALES”, which issuedas U.S. Pat. No. 6,196,458 on Mar. 6, 2001.

Each of the above-referenced applications is incorporated by referenceherein in its entirety.

BACKGROUND

1. Field of the Invention

The present invention relates to systems for providing offers toconsumers. More particularly, the present invention concerns systems forproviding offers to consumers using billing statements.

2. Description of the Related Art

Sellers present offers to consumers in order to sell products and toacquire new customers. For example, a retailer may use newspaperadvertisements or mass mailings to offer products to consumers for saleprices. In another example, a representative of a long distancetelephone service provider may call a consumer and offer cash inexchange for the consumer's agreement to use the provider's service.Other conventional channels for presenting offers include radio andtelevision advertisements, billboards, and in-store displays.

However, since a typical consumer is inundated with offers receivedthrough conventional channels, such offers are rather limited in theirability to receive the consumer's thorough consideration. Moreover, ofall the offers presented to the consumer, only a small fraction actuallydeal with products and/or services in which the consumer is interested.As a result of these factors, most offers presented to consumers throughconventional channels are virtually ignored.

Some sellers, realizing that only a small fraction of presented offerswill be considered and even a smaller fraction will actually beaccepted, try to increase a total number of accepted offers byincreasing the total number of offers presented to consumers. Thisstrategy is not acceptable to most sellers because it suffers from theproblems described above with respect to offers presented throughconventional channels and because it can be quite costly. Additionally,since this strategy results in an increase in the number of offerspresented through conventional channels, the already small fraction ofthese offers which are effectively considered tends to decrease.

In an attempt to address the foregoing, some sellers have employedbilling statements as vehicles for presenting offers to consumers. Forexample, Synapse Group, Inc. of Stamford, Conn. presents offers formagazine subscriptions using materials enclosed with monthly credit cardbilling statements. This approach presumes that a consumer will pay moreattention to items received along with a billing statement than toadvertising vehicles such as mass mailings or newspaper advertisements.As a result, it is believed that the approach increases the percentageof offers which are thoroughly considered by consumers.

One shortcoming of the previous approach results from the limited spaceavailable for including advertising materials within billing statements.Due to this limitation, offers which can be presented using thisapproach are limited to a small number of concise, simply explainedoffers. Accordingly, what is needed is a system allowing sellers topresent more offers and additional types of offers, including complex,customized, and dynamically-created offers, to consumers using billingstatements.

Moreover, offers presented using billing statements as described aboveare no more likely than other conventional offers to deal with productsor services in which a particular consumer is interested. As a result,such offers are no more likely than conventional offers to be acceptedeven if thoroughly considered. Therefore, what is also needed is asystem providing consumers with increased incentive to accept offerspresented using billing statements.

SUMMARY

In order to address the foregoing, the present invention, according toone embodiment, concerns a billing statement including a description ofa transaction and an offer pointer associated with the transaction,wherein the offer pointer includes information that may be used toreview an offer.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a view of a billing statement according to one embodiment ofthe present invention;

FIG. 2 is a block diagram of a system architecture according to oneembodiment of the present invention;

FIG. 3 is a block diagram of an issuing bank device according to oneembodiment of the present invention;

FIG. 4 is a block diagram of a controller according to one embodiment ofthe present invention;

FIG. 5 is a block diagram of a subsidizing merchant device according toone embodiment of the present invention;

FIG. 6 is a block diagram of a consumer device according to oneembodiment of the present invention;

FIG. 7 is a tabular representation of a portion of a consumer accountdatabase according to one embodiment of the present invention;

FIG. 8 is a tabular representation of a portion of a transactiondatabase according to one embodiment of the present invention;

FIG. 9 is a tabular representation of a portion of a rules databaseaccording to one embodiment of the present invention;

FIG. 10 is a tabular representation of a portion of an offer databaseaccording to one embodiment of the present invention;

FIG. 11 is a tabular representation of a portion of a central consumerdatabase according to one embodiment of the present invention;

FIG. 12 is a tabular representation of a portion of a subsidizingmerchant database according to one embodiment of the present invention;

FIG. 13 is a tabular representation of a portion of an offer trackingdatabase according to one embodiment of the present invention;

FIG. 14 is a tabular representation of a portion of an issuing bankdatabase according to one embodiment of the present invention;

FIG. 15 is a tabular representation of a portion of a consumer databaseaccording to one aspect of the present invention;

FIG. 16 is a tabular representation of a portion of a subsidy offerdatabase according to one embodiment of the present invention;

FIG. 17 is a flow diagram of processor-executable process steps togenerate a billing statement according to one embodiment of the presentinvention; and

FIG. 18 is a flow diagram of processor-executable process steps togenerate a billing statement according to one embodiment of the presentinvention.

DETAILED DESCRIPTION

Various embodiments of the present invention comprise a billingstatement including a description of a transaction and an offer pointerassociated with the transaction, wherein the offer pointer includesinformation that may be used to review an offer. According to oneexample of the present invention, the offer pointer is a toll-freetelephone number printed adjacent to a description of a transaction on acredit card billing statement. The telephone number accesses a voiceresponse (VR) system presenting conditional branches through which aconsumer can navigate to review an offer. In another example, ahyperlink is positioned adjacent to a total amount owed listed on anelectronically-displayed billing statement. The hyperlink may beselected to access a website presenting offers for review by theconsumer. The offers reviewed in each of these examples may becustomized based on details of the transaction such as the productpurchased, the amount of the purchase, the identity of the consumer,and/or on other information.

If, in accordance with various embodiments of the present invention, anoffer pointer is included in a billing statement, it is likely that thereviewed offer will be more thoroughly considered than a conventionaloffer. Moreover, the complexity of the offer and the number of offersmay not be limited by space constraints imposed by the billingstatement. The offer may also be generated so as to be tailored to thecharacteristics or needs of the consumer, the seller, or a third party.As a result, the offer may be more likely to be accepted than an offerpresented using conventional methods.

In various embodiments of the present invention, the reviewed offer, ifaccepted, reduces an amount owed which is associated with thetransaction. For example, the reviewed offer may specify that theconsumer's account balance will be reduced by the amount owed as aresult of the transaction in exchange for performance of an obligation.This further aspect provides incentive to a consumer to accept thereviewed offer, since the acceptance would allow the consumer to avoid apreviously-incurred cost. This incentive is particularly strong if theconsumer regrets the transaction to which the offer is associated. Inaddition, this aspect allows billing companies, such as credit cardissuers, to reduce uncollectable debt by allowing consumers to reducetheir outstanding account balances through accepted offers.

According to various embodiments, the present invention concerns abilling statement including a description of a transaction and an offerassociated with the transaction, wherein the offer is to reduce anamount owed associated with the transaction. As an example of thisaspect, a billing statement for a credit card account includes adescription of a purchase of gasoline and an amount owed by the consumeras a result of the purchase. Printed adjacent to the amount is textwhich indicates that the amount will be deducted from the account if theconsumer agrees to switch long distance telephone service providers. Ina further example, several transactions described in a billing statementmay each be associated with different offers to reduce amounts owedassociated with each respective transaction. Advantageously, thesevarious embodiments allow the consumer to avoid a previously-incurredcost, and may reduce a creditor's uncollected debt by providing analternative system for consumers to reduce their outstanding balances.

In various embodiments, the present invention relates to a system inwhich: transaction information is received; an offer pointer isdetermined based on the transaction information, the offer pointerincluding information that may be used to review an offer; and the offerpointer is transmitted to a consumer via a billing statement. Since theoffer pointer is determined based on received transaction information,the offer which may be reviewed using the offer pointer may beparticularly suited to the transaction information. In one particularexample, the received transaction information indicates that a tennisracket was purchased, therefore the determined offer pointer is a WorldWide Web address of a tennis supply website presenting offers for othertennis equipment. Advantageously, these various embodiments may increasethe likelihood that the reviewed offer is accepted.

In various embodiments, the present invention is a system in which:transaction information is received; an offer is determined based on thetransaction information; an offer pointer is determined, the offerpointer including information that may be used to review the offer; andthe offer pointer is transmitted to a consumer via a billing statement.According to these various embodiments, the offer is determined based onreceived transaction information; therefore, the offer itself may beparticularly suited to the transaction information. Such an arrangementmay thereby increase the likelihood that the offer is accepted.

In various embodiments, the present invention concerns a system in whicha request is received from a consumer to review an offer associated witha transaction on a billing statement, the offer being an offer to reducean amount owed by the consumer. The offer is transmitted to the consumerand a new amount owed is calculated if the offer is accepted by theconsumer. These various embodiments allow a consumer to avoidoverpayment or underpayment of an amount owed by updating the amountowed based on an accepted offer. In other various embodiments, a newminimum payment is also determined if the offer is accepted. Thisfeature conveniently provides a consumer with new minimum paymentinformation based on the accepted offer, thereby reducing thepossibility of underpayment or overpayment by the consumer.

FIG. 1 is a representation of a billing statement according to oneembodiment of the present invention. As will be described in greaterdetail below, the billing statement 1 may be generated by a bank, acredit card issuer, a billing service, or any other entity capable ofgenerating billing statements. As shown, the billing statement 1reflects information corresponding to a particular credit card account,including an itemized listing of transactions posted to the account.

Generation of a typical credit card billing statement involves severalsteps. Initially, an account is established with an issuing bank whichassociates a consumer (or consumers) with a particular credit cardaccount number. The consumer receives a credit card including a magneticstrip encoding his particular account number, and the consumer submitsthe account number to a seller in order to purchase products and/orservices therefrom. In this regard, the consumer may submit the accountnumber to a seller by allowing the seller to scan and decode the accountnumber from the magnetic strip or by transmitting the account number tothe seller via the World Wide Web. Next, the seller transmits theaccount number along with various details of the transaction, such as atransaction date and time, a description of the product or servicepurchased, a purchase price, the seller's identity, etc. to a creditcard clearinghouse such as CCH. The credit card clearinghouse forwardsthe information to an appropriate issuing bank based on the accountnumber or to a billing statement generator designated by the appropriateissuing bank. According to the invention, a billing statement such asthe billing statement 1 is then generated by the issuing bank or thebilling statement generator using the forwarded information.

The billing statement 1 includes several types of information. Forexample, the billing statement 1 includes an account number 5 which wasused to execute the transactions described in the billing statement. Thebilling statement 1 also includes contact information 10 which specifiesa consumer with whom the account number 5 is associated. The contactinformation 10 may include a postal address, an Internet Protocol (IP)address, an e-mail address, or any other information that may be used tocontact the consumer. Accordingly, the billing statement 1 may betransmitted by post, e-mail, or other means to the consumer described bythe contact information 10.

For each transaction described in the billing statement 1, the billingstatement 1 lists a transaction date 15, a description 20 of thetransaction, an amount owed 25 and alternative payment information 30.The transaction date 15 may specify a date on which the transaction wasauthorized. The billing statement 1 may also, or alternatively, list aposting date for each transaction, which may be a date on whichtransaction settlement is reflected in the account. The description 20may include, but is not limited to, descriptions of the particularproduct and/or service purchased and of the seller from whom the productand/or service was purchased. The amount owed 25 specifies the amountwhich the consumer agreed to pay for the product and/or service which isthe subject of the associated transaction. In some embodiments, thedescription 20 includes one or more of the transaction date, the amountowed, the posting date, and any other information describing atransaction.

According to the present invention, the alternative payment information30 may include an offer pointer and/or a statement offer. Offer pointerswill be discussed first. Generally, an offer pointer includesinformation which a consumer can use to review an offer.

An offer pointer may be a Uniform Resource Locator (URL) referencinginformation contained in a website. For the present description, a URLis a data string that specifies how to access network resources, such ashypertext markup language (HTML) documents. A sample URL is“http://www.NeedNotPay.com/SmallCharge/1.htm”, with “http” identifyingone of many protocols which may be used to retrieve documents on anetwork, and with “www.NeedNotPay.com” being a hostname (referred toherein as a website) which can be resolved into an IP address using theDomain Name Service. The portion “SmallCharge/1.htm” identifies adirectory and a document provided by the website. In a case in whichthis sample URL is used as an offer pointer, the document “1.htm” mayinclude one or more offers.

An offer pointer may also include a relative URL, which specifies only aportion of a URL. In such a case, the unspecified portion of the URL isinferred from the context of the document in which the relative URL islocated. For example, a consumer accesses a website maintained by anissuing bank to view an electronic copy of a billing statement. Thebilling statement appears similar to the billing statement 1 andincludes a hyperlink associated with a listed transaction. The hyperlinkreferences a relative URL specifying only a directory and a document inthe directory. In order to access the document to which the relative URLrefers, it is inferred that the protocol and website missing from therelative URL are those used to access the website of the issuing bank.It should be noted that both the hyperlink and the relative URL may beconsidered offer pointers in this example.

A URL offer pointer may reference a homepage of a website (e.g.,http://www.NeedNotPay.com) which presents offers or hyperlinks to otherWeb pages presenting offers. Again, these offers need not have anythingto do with the transaction with which the URL is associated on a billingstatement. However, a URL offer pointer may be associated with atransaction based on an aspect of the transaction, such as theassociated amount owed 25 or the description 20. That is, based onpre-existing rules, cross-subsidy offers, yield management techniques,or the like, a specific offer pointer may be tailored for associationwith a specific transaction (or type of transaction) on a billingstatement. For example, if an amount owed 25 associated with atransaction is less than $5.00, a URL offer pointer may be associatedwith the transaction which references a page of a website providingoffers appropriate for transactions associated with an amount owed 25 ofless than $5.00 (e.g., “http://www.NeedNotPay.com/SmallCharge/1.htm”).In another example, a URL offer pointer“http://www.dontpay.com/any/cosmetics.htm” may be associated with atransaction if the transaction is associated with a description 20 ofsome type of cosmetic. Accordingly, it may be desirable for a Web pagereferenced by this URL to present offers which may be attractive to aconsumer who purchases cosmetics.

In yet another example, transactions in a billing statement which areassociated with an amount owed 25 of less than $5.00 are associated witha particular URL offer pointer, regardless of any other factors.However, when a consumer accesses a Web page corresponding to the offerpointer, he may be asked to enter identifying information such as hiscredit card account number. Based on this or other entered information,an offer is presented for review which may be different for a firstconsumer than an offer presented to a second consumer accessing the sameWeb page. The offers may differ in the benefit conferred, in theobligation to be performed, or both. For example, a more valued consumermay be presented with an offer having a less onerous obligation than anoffer presented to a less valued consumer for a same benefit.

In addition to the factors mentioned in the foregoing examples, aparticular offer pointer may be associated with a transaction based onfactors such as the consumer's credit limit, credit history, address orgeographic location, profile information, the current account balance,the minimum payment due, purchasing history, previously accepted offers,the time or date of the transaction, inventory, market conditions, yieldmanagement information, relationships with other consumers, or the like.

A URL offer pointer according to the invention may also include data tobe passed to a website referenced by the URL. The data included in suchan offer pointer may be formatted according to the Common GatewayInterface (CGI) format or another format for passing data from a networkclient to a server. For example, an offer pointer may read“http://www.NeedNotPay.com/BigCharge/Code=X847Q”. In this case, the data“Code=X847Q” may represent a particular offer which the website presentsto a consumer in response to reception of the data, or details of atransaction (encoded or otherwise) with which the offer pointer isassociated on a billing statement. In the latter case, the website maydetermine an appropriate offer or offers to present to the consumerbased on the data and/or other information as discussed above withrespect to offer pointers. Examples of offer determination based ontransaction information will be discussed below. However, it should benoted that certain embodiments allow for less-complex generation ofoffer pointers because appropriate offers need not be determined beforedetermination of the offer pointers.

A URL offer pointer may also identify the consumer to whom the offerpointer is presented. For example, the last four digits of a consumer'scredit card account number may be hashed into a URL offer pointer as ameans of identifying the consumer when the consumer submits the offerpointer to a website in order to review an offer.

In addition to URL's, offer pointers included in the alternative paymentinformation 30 may comprise a telephone number. In order to use thistype of offer pointer to review an offer, a consumer dials the telephonenumber and is presented with at least one offer for review. It should benoted that, like URL offer pointers discussed above, a telephone numberoffer pointer may be selected for association with the transactionbecause it allows access to offers which are appropriate in view of oneor more characteristic(s) of the transaction, consumer, or other factor.Of course, the telephone number may simply allow review of one or moreoffers which are not particularized to the associated transaction.

Alternatively, a consumer calling a telephone number offer pointer maybe presented with a VR menu through which the consumer navigates byselecting appropriate menu items before being presented with at leastone offer for review. The menu items may correspond to details of thetransaction to which the telephone number is associated, informationregarding the consumer, or to any other information that may be used bythe VR system to determine at least one offer to present to the consumerfor review.

Included with a telephone number in an offer pointer may be a code or anextension number which is dialed after dialing the telephone number. Thetelephone extension may be dialed to access offers associated with theextension, and the code may be used to determine an appropriate offer topresent to the consumer for review. As described above with respect totelephone number offer pointers, extension numbers or codes may allowconsumers to access particular offers which are appropriate to anassociated transaction or may simply reference one or more offersselected for other reasons. As described with respect to codes passedwith URL offer pointers, an extension number or code may also representa particular offer which is presented to a consumer in response toreception of the extension number or code, or details (encoded or not)of the associated transaction which are used to determine an offer topresent to the consumer for review.

In addition to the foregoing, other offer pointers that may be used inaccordance with the present invention include a television, cable, orsatellite channel on which a consumer may review offers, a postaladdress from which a consumer may request to review offers, a geographiclocation to which a consumer may go to review offers, and UniformResource Identifiers, of which URLs are a subset. Moreover, it isconsidered that an offer reviewable using an offer pointer is associatedwith any transaction to which the offer pointer is associated.

It should be noted that any or all of the offer pointers discussed abovemay be used to review an offer to reduce or eliminate an amount owed 25associated with a transaction to which an offer pointer is associated.For example, a consumer may access a Web page referenced by a URL offerpointer listed under the alternative payment information 30 and inassociation with a transaction. The Web page presents an offer to theconsumer and, if the consumer accepts the offer, an amount owed 25associated with the transaction is deducted from the consumer's accountand the consumer is bound to abide by any obligation specified in theoffer. In one embodiment, a party receiving the benefit of theobligation then pays the amount owed 25 to the issuing bank. Other typesof settlement are discussed below.

As described above, alternative payment information 30 according to thepresent invention includes statement offers as well as offer pointers. Astatement offer differs from offers reviewable using offer pointers onlyin that a statement offer is an offer included in a billing statement.Therefore, both statement offers and offers may be determined using anymethod discussed herein for determining either type of offer, and mayhave any characteristics attributed to either herein. For clarity,however, offers reviewable using offer pointers are referred to as“offers” and offers included in a billing statement are referred to as“statement offers”.

A statement offer may be accepted by a consumer using a check box orother means, such as those described in parent application Ser. No.09/100,684. A statement offer may explicitly describe a benefit, if any,which will be conferred upon an agreement to perform or upon performanceof an explicitly described obligation, if any. A statement offer mayalso be presented in terms of an obligation to which the consumer mayindicate agreement, wherein it is clear from the billing statement whatbenefit will be received by the consumer in return. For example, asshown on billing statement 1, alternative payment information 30includes an implied statement offer to eliminate an amount owed 25 of$25.00 if the consumer agrees to change his long distance provider toNCI. In this case, an agreement to perform the obligation is deemedequivalent to acceptance of the implied statement offer. Determinationof a statement offer to associate with a transaction on a billingstatement may take into account details of the transaction, theconsumer, or other factors. For example, determination of a statementoffer may take into account any of those factors discussed above withrespect to determination of an offer pointer or determination of anoffer to present in response to a received offer pointer.

As alluded to above, offers and statement offers according to theinvention may be associated with a transaction based on an amount owed25 associated with the transaction. In one example, a long distanceservice provider may agree to pay an issuing bank $20.00 for eachconsumer who accepts a statement offer or an offer requiring theconsumer to switch to the service. Based on this agreement, the issuingbank may associate such offers or statement offers with transactionsassociated with amounts owed in the range of $15.00 to $20.00. Thebenefit of an offer may be a reduction in an amount owed to apsychologically appealing number, such as $999.99 or $1000.00.

It should be noted that an offer or a statement offer associated with atransaction in accordance with the invention requires the consumer tofulfill some or no obligation in exchange for some or no benefit.Examples of obligations the consumer might be required to fulfillinclude: switching long distance telephone service providers;test-driving a particular car; making a minimum purchase at a merchant;answering an on-line survey; and referring a number of people to applyto the issuing bank for new credit card accounts. The obligations mayalso be associated with a deadline for fulfillment, after which theoffer is void and/or a penalty is assessed against the consumer. If theobligation component of an offer requires a consumer to spend an amount,the consumer may be required to charge the amount to the accountreflected in the billing statement. Such an obligation would benefit theissuing bank and compliance with the obligation would be easy to track.

The benefit of an offer or a statement offer to a consumer may besomething other than a reduction of an account balance. Other possiblebenefits include: products and/or services, a reduction of an interestrate on revolving balances; a postponement of a payment due date; areduction in a minimum payment due; an increased credit limit; anincreased grace period; or any other benefit. The benefit of an offermay also be a rebate. For example, a consumer may accept an offer, pay atotal amount owed on a credit card account, fulfill the obligationcomponent of the offer, and then receive a rebate check from thecontroller 200. Alternatively, the rebate may come directly from theentity receiving a benefit of the obligation.

The benefit and/or the obligation of an offer or a statement offer maybe based on information about a consumer or transactions executed by theconsumer. For example, if a consumer has purchased a sweater using hiscredit card account, the consumer may be presented with an offer or astatement offer which requires the consumer to clean the sweater at aparticular cleaner in exchange for a reduction in his account balanceequal to the price of the sweater. Information on which benefits and/orobligations may be based also includes all the information which may betaken into account in the generation of offer pointers.

Returning to the general description of the billing statement 1, thecurrent charges 40 reflect a total of the listed amounts owed 25. Theprevious charges owed 45 reflect charges not listed on the currentbilling statement 1 but owed by the consumer, and the finance charge 50is a finance charge also owed by the consumer according to terms underwhich the credit card account was established. The total amount owed 55is a sum of the current charges 40, the previous charges owed 45 and thefinance charge 50. Although only the total amount owed 55 is associatedwith alternative payment information 30 in FIG. 1, it should be notedthat any of the current charges 40, the previous charges owed 45 and thefinance charge 50 may also be associated with alternative paymentinformation 30. In this regard, the total amount owed 55, the currentcharges 40, previous charges owed 45, the finance charge 50 and otherinformation which may be contained in the billing statement 1 areconsidered descriptions of transactions, wherein offer pointers,statement offers and/or offers that are associated therewith are also tobe considered associated with the transactions described thereby.

A minimum due 60 and a due date 65 are also shown on the billingstatement 1. Associated with the minimum due 60 is alternative paymentinformation 30 in the form of an implied statement offer to dischargethe consumer of his duty to pay the minimum due 60 by the due date 65.Acceptance, processing and settlement of such a statement offer isdescribed in detail with respect to FIG. 18.

Elements 70 through 80 on the billing statement 1 may be used by theconsumer for record-keeping purposes. Specifically, the modified totalamount owed entry area 70 allows a consumer to record a total amountowed which is different from the total amount owed 55 due to acceptanceof an offer or a statement offer, and the modified minimum due entryarea 75 and the modified due date entry area 80 allow a consumer torecord any modifications to the minimum due 60 or the due date 65resulting from acceptance of an offer or a statement offer,

It should be noted that even though the billing statement 1 associates astatement offer or an offer pointer with a transaction by including thestatement offer or offer pointer on a same line as other informationassociated with the transaction, it should be noted that a statementoffer or an offer pointer may be associated with a transaction in manyother ways according to the present invention. For example, a statementoffer or an offer pointer may appear above or below informationregarding a transaction to which the statement offer or offer pointer isassociated. Moreover, a single statement offer or offer pointer may beassociated with one or more listed transactions. In another embodiment,the billing statement 1 contains a printed explanation of which offerpointers or statement offers are associated with which listedtransactions. In other embodiments, a transaction is associated with astatement offer or an offer pointer by placing a number or other symbolnext to an element describing the transaction such as the transactiondate 15, the description 20 or the amount owed 25 and by printing thestatement offer or offer pointer next to an identical symbol elsewherein the billing statement, in accompanying papers, in a guide provided tothe consumer in hardcopy form, on a Web page, or using any other knownmethod for communicating information to a consumer.

It should also be noted that a statement offer or an offer pointer maybe considered to be associated with a transaction according to thepresent invention if it is associated with any of the current charges40, the previous charges owed 45, the finance charge 50, the totalamount owed 55, the minimum due 60 and the due date 65, since each ofthese elements are associated with at least one transaction. Moreover, atransaction may be associated with one or more offer pointers and/or oneor more statement offers, and one or more offer pointers and/or one ormore statement offers may be associated with one or more transactions.

Although the billing statement 1 corresponds to a credit card account,the present invention may be used in conjunction with any other type ofbilling statement, such as those corresponding to utility service,telephone service, cable television service, Internet service, loaninstallments, car payments, or any other product and/or service forwhich a consumer is billed, either before or after a purchase. Inaddition, a billing statement may include reminders to fulfill theobligation components of offers a consumer has previously accepted.

A billing statement in accordance with the invention need not be inhardcopy form. Rather, such a billing statement may be in anyperceptible form, such as an HTML document viewable by a Web browser, adata structure in another form viewable by known or future systems, oran audio file. In this regard, a hardcopy billing statement may containan offer pointer which a consumer may use to view an electronic versionof the billing statement. The consumer may select one or more of thetransactions shown in the electronic version using hyperlinks or othertechniques, and may, in response, receive offers for reducing an amountowed associated with the selected transaction(s).

System

FIG. 2 is a block diagram illustrating a system for generating billingstatements according to embodiments of the present invention. Of course,other systems may be used to practice the invention. As shown, thesystem includes an issuing bank device 100 in communication with acontroller 200. The controller 200 is also in communication with asubsidizing merchant device 300 and a consumer device 400. Multiplephysical devices may be used to perform the functions of each element ofFIG. 2 according to the present invention, and some or all of thesefunctions may also be performed manually.

Although one consumer device 400 is shown in FIG. 2, any number ofconsumer devices may be in communication with the controller 200according to the invention. Similarly, any number of issuing bankdevices 100 or subsidizing merchant devices 300 may be in communicationwith the controller 200. The latter arrangement is particularlybeneficial in a case where the controller 200 is operated by an entityproviding billing statement generation and/or offers via billingstatements in accordance with the present invention.

Furthermore, although the communication media between the issuing bankdevice 100, the controller 200, the consumer device 400 and thesubsidizing merchant device 300 are represented by dedicatedconnections, it should be understood that one or more of the illustrateddevices may be connected to a network, such as a Local Area Network or aWide Area Network, to which is also connected at least one of theremaining devices. The network may be an IP-based network, such as theWorld Wide Web, and/or one or more of a satellite based network, acellular network, a radio frequency network, a telephone network, acable television network, or any other communication system fortransferring data between locations.

Those skilled in the art will understand that devices in communicationwith each other need not be continually transmitting to each other. Onthe contrary, such devices need only to transmit to each other asnecessary, and may actually refrain from exchanging data most of thetime. For example, a device in communication with another device overthe World Wide Web may not transmit data to the other for weeks at atime.

A description of operation of the system of FIG. 2 in accordance withone embodiment of the invention is set forth below. The descriptionincludes many optional and alternative methods which may be used topractice the invention. It should be understood that the invention isnot deemed limited to the methods set forth in the description.

Billing Statement Generation

Initially, it is assumed that a consumer has been issued a credit cardby an issuing bank operating the issuing bank device 100. The creditcard may be issued according to any known method, and the issuing bankdevice 100 may store information associated with the credit card, suchas a consumer name, address and an account number. Of course, in a casethat a billing statement for an account other than a credit card accountis to be generated according to the invention, the issuing bank device100 may be substituted with a device operated by an entity maintainingthe other account.

As described above, the issuing bank device 100 may be in communicationwith a credit card clearinghouse for obtaining credit card transactioninformation. In one embodiment, the issuing bank device 100 receivesfrom the credit card clearinghouse transaction information associatedwith transactions conducted using credit cards issued by the issuingbank device 100. The issuing bank device 100 may also receive thistransaction info nation directly from sellers conducting thetransactions.

Once the transaction information is received, the issuing bank device100 may generate a billing statement including a description of atransaction and an offer pointer associated with the transaction,wherein the offer pointer includes information that may be used toreview an offer. Furthermore, the issuing bank device 100 may providegeneration of a billing statement including a description of atransaction and an offer associated with the transaction, wherein theoffer is an offer to reduce an amount owed associated with thetransaction. In the latter case, the offer may be a statement offer oran offer reviewable using an offer pointer.

In one embodiment, the issuing bank device 100 generates a billingstatement by determining, for at least one transaction included in thereceived transaction information, an offer pointer and/or a statementoffer to associate with the transaction. Rather than determining offerpointers and/or statement offers to associate with a transaction, theissuing bank device 100 may transmit associated transaction informationto the controller 200, which determines and transmits the offer pointersand/or statement offers back to the issuing bank device 100. Forexample, in a case that a transaction is associated with an amount owedof less than $50.00, the controller 200 may determine an offer pointerto associate with the transaction that directs the consumer to a Webpage presenting offers which, if accepted, result in elimination ofamounts owed which are less than $50.00. Such offers may be transmittedto the controller 200 from the subsidizing merchant device 300. Theissuing bank device 100 may also store offers received from thesubsidizing merchant device 300. In this regard, the subsidizingmerchant device 300 may provide subsidy offers from one or moresubsidizing merchants and will be discussed in more detail below.

In another embodiment, transaction information is received by thecontroller 200 directly from sellers or from the credit cardclearinghouse, and the determination of statement offers and offerpointers is thereafter performed by the controller 200, the issuing bankdevice 100 or another device.

Of course, billing statement generation according to the invention maybe performed by an entity other than the issuing bank device 100. Forexample, the issuing bank device 100 may transmit received transactioninformation to an entity which operates as described above to generatebilling statements for the issuing bank based on the transactioninformation. As described with respect to the controller 200, thetransaction information may be received by the entity directly fromsellers or from the credit card clearinghouse.

Presenting Offers for Review

The determination of offers for consumer review may occur prior to thedetermination of offer pointers to associate with transactions on abilling statement. That is, the controller 200 may determine an offerbased on transaction information and then determine an offer pointerwhich can be used by a consumer to review the offer. Using thedetermined information, the controller 200 or another device maygenerate a billing statement associating the offer pointer with thetransaction.

In a case that the issuing bank device 100 determines an offer pointerbased on transaction information, the transaction information may betransmitted to the controller 200 for determination of a correspondingoffer. Alternatively, the offer pointer itself may be transmitted to thecontroller 200 for determination of a corresponding offer. Of course,the offer pointer transmitted to the controller 200 may includetransaction information which is used by the controller to determine theoffer.

Offers may also be determined anytime after the billing statement isgenerated. These embodiments provide flexibility and control indetermining an appropriate offer to present to a consumer. For example,a Web page referenced by an offer pointer associated with a transactionon a billing statement may be periodically updated with new offers suchthat consumers accessing the Web page at different times may reviewdifferent offers. In another example, an offer corresponding to an offerpointer may be determined only after the offer pointer is used by theconsumer device 400 to access an offer. In one such embodiment, theissuing bank device 100 generates a billing statement including offerpointers associated with transaction information, wherein the offerpointers can be used by the consumer device 400 to access a Web pageprovided by a Web server executing in the controller 200. The Web pagerequests consumer-specific or transaction-specific information from theconsumer device 400, such as the transaction date, the description, orthe amount owed as a result of the transaction, and the controller 200thereafter determines and generates an offer to transmit to the consumerdevice 400 for review, the offer being based on the received transactioninformation

In a variation of the foregoing, an offer pointer generated by theissuing bank device 100 may indicate transaction information but mightnot be directly associated with a particular offer. Therefore, when theconsumer device 400 uses the offer pointer to access the controller 200,the controller 200 determines an offer or offers to present to theconsumer, the determined offer being based on the transactioninformation indicated by the offer pointer, and/or other information,such as inventory, market conditions, revenue management information, orthe like.

Of course, offers corresponding to offer pointers may be determined bythe issuing bank device 100 instead of the controller 200, or by anyother device. In any case, offers and statement offers may be chosenfrom offers stored in the controller 200, received from the subsidizingmerchant device 300 or received from another device.

In one embodiment, the controller 200 includes systems required toreceive requests for offers from the consumer device 400. For example,the controller 200 may be physically connected to the World Wide Web andmay maintain a website which can be accessed using URL offer pointerspresented in a billing statement. In this regard, the website may alsotransmit a billing statement to the consumer device 400 which includeshyperlink offer pointers selectable in order to request offers forreview.

The controller 200 may also connect to the telephone network andmaintain a VR unit to respond to calls from the consumer device 400 to atelephone number offer pointer listed in a billing statement. If such acall is received, the controller 200 presents an appropriate offer tothe consumer device 400 for review. As previously described, anappropriate offer may be determined based on the telephone number, onconsumer responses to a program executed by the VR unit, on a dialedcode or extension number which specifies a particular offer or encodestransaction information, or on any other considerations for determiningoffers mentioned herein. In one embodiment, the controller 200 receivesoffers from the subsidizing merchant device 300 and determines an offerto present to the consumer based on the received offers.

In some embodiments, the issuing bank device 100 may inform thecontroller 200 of which offer pointers were included in billingstatements of particular consumers. Accordingly, if a consumer attemptsto review offers by accessing the controller 200 using an offer pointerwhich was not included in his billing statement, the controller 200informs the consumer that the offer pointer is not valid. This featuremay serve to prevent a consumer from trying to obtain offers that arenot meant for him.

Receiving Acceptance of an Offer

Once an offer is presented to a consumer for review through the consumerdevice 400, the controller 200 may provide the consumer with means foraccepting the offer. For example, in a case that an offer is presentedvia a Web page, the Web page may include an “accept” button selectableby the consumer using the consumer device 400. Upon receiving anindication that the “accept” button was selected, the controller 200determines that the offer was accepted. If an offer is presented via arecording played by a VR unit in the controller 200, a consumer maytransmit his acceptance by voice, or by pressing an indicatedcombination of keys on the consumer device 400 (e.g., a telephone) toaccept the offer.

Prior to accepting an offer, a consumer may, in one embodiment, obtainfurther information about the offer. For example, a “details” button ona Web page presenting the offer may be selected using the consumerdevice 400 and, in response, the controller 200 may transmit a Web pageto the consumer device 400 including further details about the offer.

A consumer may also enter into a negotiation process with the controller200 prior to accepting an offer. For example, the controller 200 maypresent an offer to a consumer through the consumer device 400 whichwill eliminate $20 from the consumer's account. Next, the consumer mayask that the offer eliminate $30 from the account. The controller 200may reject the new terms, accept the new terms, or present anotheroffer.

In one embodiment, a consumer is presented with the option of selectingone or more offers from amongst several offers. For example, theconsumer may accept three presented offers having associated benefitstotalling an amount owed due to a particular transaction. In someembodiments, the associated benefits may exceed the amount owed, and mayeven exceed a total amount owed to the issuing bank device 100.

Furthermore, the acceptance of some offers may affect a consumer'sability to accept other offers. In this regard, if a consumer accepts anoffer to eliminate a $20 amount owed from the consumer's account, theconsumer may thereafter be unable to review other offers to eliminatethe same amount owed. On the other hand, a consumer's acceptance of oneoffer may trigger the controller 200 to present other offers to theconsumer, either related or unrelated to the accepted offer. Forexample, a consumer who accepts an offer having an obligation to try ahome burglar alarm system for one month might be presented with an offerto sell a car alarm system.

Settlement

Once the controller 200 has received an indication of the consumer'sacceptance of an offer, the controller 200 may transmit to the consumerdevice 400 an indication of a new amount owed by the consumer in view ofthe accepted offer. The transmission may include a modified total amountowed and/or a modified minimum amount due, as described with respect toentry areas 70 and 75 of the billing statement 1. For example, if aconsumer accepts an offer to switch long distance service to NCI, thecontroller 200 might transmit to the consumer device 400 a message suchas “Ignore the charge for that suit. Your new, reduced balance is$172.50 and your minimum payment due is $12.03.”

Additionally, the consumer may be instructed to check a check box on hisbilling statement indicating that a corresponding amount owed need notbe paid, and/or to write a modified total amount due on the billingstatement. These actions may serve to alert the issuing bank device 100to the details of the offer. In other embodiments, these actions areimmaterial except in providing the consumer with a sense of relief,accomplishment, or gratification. The controller 200 may also provide acode to a consumer after the consumer has accepted an offer, withinstructions to write the code on his billing statement. The code mayallow the issuing bank device 100 to verify that a party other than theconsumer has assumed part of the debt reflected in the billingstatement.

The controller 200 may also transmit a new amount owed, a modified totalamount owed, a modified minimum amount due and/or any other accountinformation which may have changed due to the accepted offer to theissuing bank device 100. The issuing bank device 100 may then updatecorresponding stored account information based on the receivedinformation. Alternatively, the issuing bank device 100 may be notifiedthat an offer has been accepted, and may calculate and updatecorresponding stored account information accordingly.

In the case of an offer received by the controller 200 from asubsidizing merchant and presented to a consumer, the controller 200 maynotify the subsidizing merchant once the offer is accepted. For example,if a long distance telephone service provider has input an offer to thesubsidizing merchant device 300 and the offer is transmitted therefromto the controller 200, the offer may be transmitted to a consumer duringoperation of a system according to the invention. If the offer issubsequently accepted, the controller 200 may notify the serviceprovider of the acceptance through the subsidizing merchant device 300.In the case that the subsidizing merchant device 300 collects offersfrom more than one subsidizing merchant, the controller 200 may notifythe service provider directly of the acceptance.

Upon receiving notification of the acceptance, the subsidizing merchantmay then execute any actions needed for the consumer to fulfill anyagreed-to obligation. For example, a long distance service provider mayswitch a consumer to its long distance service once notified that theconsumer has accepted an offer including an obligation to switch to thelong distance service. The provider may, however, wait for the consumerto perform some action, such as confirming the acceptance by mail,before switching the consumer to its service.

In some embodiments, the controller 200 instructs the consumer to notifythe subsidizing merchant device 300 or the subsidizing merchant of anyobligation included in an accepted offer. In other embodiments, thesubsidizing merchant device 300 or the subsidizing merchant may not benotified of the accepted offer until after the consumer has fulfilled acorresponding obligation.

After an offer has been accepted by a consumer using the consumer device400, the controller 200 may notify the issuing bank device 100 to applyany benefit associated with the offer to the consumer's account. Forexample, if an offer specifies that an amount owed associated with atransaction will be eliminated in exchange for performance of aparticular obligation, the controller 200 notifies the issuing bankdevice 100 to eliminate the amount owed from the consumer's account. Insome embodiments, the issuing bank device 100 is reimbursed for thebenefit by the controller 200, either before or after the correspondingobligation is performed. If the benefit received by the consumer is notstrictly monetary (e.g. a reduced interest rate on an outstandingbalance), then the issuing bank device 100, or some other entity, mayuse a formula in order to determine a monetary value of the benefit,which is paid to the issuing bank device 100.

It should be noted that the issuing bank device 100 may be reimbursedfor an amount less than or greater than the monetary value of thebenefit applied to the consumer's account. For example, the controller200 may pay the issuing bank device 100 an additional fee for the rightto print statement offers and offer pointers on billing statementsissued by or for the issuing bank device 100. Alternatively, thecontroller 200 may extract a fee from the issuing bank device 100 inexchange for providing consumers with incentive to open credit cardaccounts with the issuing bank.

The controller 200 may recoup the money paid to the issuing bank device100 as described above. In this case, the controller 200 may bereimbursed by the subsidizing merchant device 300 or by whatever otherentity or entities received a benefit from the obligation. Thecontroller 200 may be paid more or less than the controller 200 paid theissuing bank device 100. For example, the controller 200 may be paidmore for providing the subsidizing merchant device 300 or other entitywith a new customer.

In other embodiments, the subsidizing merchant device 300 pays theissuing bank device 100 directly, rather than paying the controller 200after the controller 200 has paid the issuing bank device 100. Onceagain, the subsidizing merchant device 300 may pay the issuing bankdevice 100 more or less than the benefit applied to the consumer'saccount by the issuing bank device 100.

The controller 200 may require notification from the subsidizingmerchant device 300 or other entity that an obligation has beenperformed before notifying the issuing bank device 100 to apply acorresponding benefit to the consumer's account. Also, the subsidizingmerchant device 300 might not pay the controller 200 until the consumerhas fulfilled the obligation. If an obligation is associated with adeadline for completion and has not been fulfilled by the deadline, theassociated offer may be revoked and any benefit previously applied tothe consumer's account may be removed. In addition, a penalty chargemight be added to the account.

In an example of settlement according to one embodiment of theinvention, a consumer accepts an offer requiring him to test drive a carin exchange for the removal of a $23.00 charge from his credit cardaccount. The offer was provided to the controller by the subsidizingmerchant device 300, which is operated by the manufacturer of the car.After receiving the acceptance, the controller 200 pays $23.00 to theissuing bank device 100 and the issuing bank device 100 removes thecharge from the account. However, the manufacturer does not pay $23.00to the controller 200 until the consumer has test-driven the car. If theconsumer fails to test-drive the car, the issuing bank device 100 maypay $23.00 back to the controller 100 and add the charge back to theaccount. In this regard, the issuing bank device 100 may reserve anamount of unused credit on the credit card account equal to $23.00.Thus, the charge can be reinstated on the account without exceeding theaccount's credit limit

One or more of the issuing bank device 100, the controller 200, and thesubsidizing merchant device 300 may verify that a consumer has fulfilledan obligation under an offer. In one embodiment, the controller 200and/or the issuing bank device 100 receive verification from thesubsidizing merchant device 300 that the obligation has been fulfilled.Such an embodiment may be most practical in a case that the obligationbenefits of the entity operating the subsidizing merchant device 300 orto an entity providing offers which are transmitted to the controller200 through the subsidizing merchant device 300. In another embodiment,the subsidizing merchant device 300 or other entity may provide to theconsumer a receipt or a code after fulfillment of the obligation whichcan be transmitted from the consumer device 400 to the controller 200 orto the issuing bank device 100 and verified thereby.

Of course, the consumer may fulfill his obligation directly with theissuing bank device 100 or with the controller 200. For example, theobligation may require the consumer to use the consumer device 400 toaccess a website maintained by the controller 200, and to answer anumber of survey questions presented thereon. In this case, thecontroller 200 detects that the consumer has fulfilled his obligationonce an answer to each question has been received.

Devices Issuing Bank Device

FIG. 3 illustrates a block diagram of one embodiment of the issuing bankdevice 100 according to the present invention. As described above, theissuing bank device 100 may be operated by an entity which issues creditcards to consumers, receives credit card transaction information and/orgenerates billing statements for delivery to consumers. The issuing bankdevice 100 may be implemented using a network server, a dedicatedhardware circuit, an appropriately-programmed general-purpose computer,another electronic, mechanical or electro-mechanical device, or anycombination thereof. In addition, the elements of FIG. 3 may be locatedentirely within a single computer or other computing device, orconnected to each other by remote communication media such as a serialport cable, telephone line or radio frequency transceiver. In oneembodiment, the issuing bank device 100 comprises one or more computersand peripheral devices.

The issuing bank device 100 of FIG. 3 comprises a processor 110, such asone or more RISC® processors. The processor 110 is coupled to acommunication port 120 through which the issuing bank device 100communicates with other devices. For example, according to oneembodiment, the issuing bank device 100 receives transaction informationfrom a credit card clearinghouse and transmits transaction informationto the controller 200 through the communication port 120. The issuingbank device 100 may also receive information regarding accepted offersfrom the controller 200 over the communication port 120. Accordingly,the communication port 120 is configured, in one embodiment, tocommunicate using hardware and software protocols of the mediaconnecting the communication port 120 with other devices with which theissuing bank device 120 communicates. It should be noted that theissuing bank device 100 may also communicate with locally-attacheddevices through the communication port 120.

Also connected to the processor 110 are an input device 125, a display130 and a printer 135. The input device 125 may be any device forinputting data, such as keyboard, a touch screen, a mouse, a voice inputdevice, an infrared port, or the like. The input device 125 may be usedby issuing bank personnel to enter data used by the issuing bank device100 in accordance with the present invention, such as transactioninformation, consumer data, rules for determining offers and offerpointers, offer information, or the like.

The display 130 is used to output graphics and text and may be a CRTcomputer monitor, a flat panel display or another type of displaydevice. Graphics, text or other data may also be output by the printer135 in hardcopy format. The printer 135 may also be used to printhardcopies of billing statements generated by the issuing bank device100 or any other device according to the present invention. The printermay be any type of printer, such as a laser printer, a thermal printer,an inkjet printer, and a dot-matrix printer.

The processor 110 is also in communication with a data storage device140. The data storage device 140 is generally a data memory and mayinclude any combination of magnetic, optical and/or semiconductormemory. The data storage device 140 may also include, for example,Random Access Memory (RAM), Read Only Memory (ROM), a compact discand/or a hard disk. The data storage device 140 stores a program 150 ofprocessor-executable process steps. The program 150 may be stored in acompressed, uncompiled and/or encrypted format. The program 150 may bestored in the storage device 140 during manufacture of the storagedevice 140, may be downloaded from a compact disc or othercomputer-readable medium, or may be retrieved from a remote or localsource through the communication port 120 in the form of a signal havingthe program 150 encoded thereon. The processor 110 executes the processsteps of the program 150 and thereby operates in accordance with thepresent invention, and particularly in accordance with the stepsdescribed herein with respect to the issuing bank device 100. In oneexample, the process steps of the program 150 are executed by theprocessor 110 to generate a billing statement including a description ofa transaction and an offer pointer associated with the transaction,wherein the offer pointer includes information that may be used toreview an offer. In another example, the processor 110 executes steps ofthe program 150 to generate a billing statement including a descriptionof a transaction and an offer associated with the transaction, whereinthe offer is an offer to reduce an amount owed associated with thetransaction.

According to one embodiment, the steps of the program 150 aretransferred from the data storage device 140 into a main memory, such asa RAM, and executed therefrom by the processor 110. In alternateembodiments, hard-wired circuitry may be used in place of, or incombination with, processor-executable software process steps forimplementation of the processes of the present invention. Thus,embodiments of the present invention are not limited to any specificcombination of hardware or software.

The data storage device 140 also stores processor-executable processsteps for basic operation of the issuing bank device 100, such asprocess steps of an operating system, a Web server, a databasemanagement system and device drivers for allowing the issuing bankdevice 100 to interface with peripheral devices. These latter processsteps are known to those skilled in the art, and are therefore not shownor described in detail herein.

The storage device 140 also stores a consumer account database 160 and atransaction database 170. Briefly, the consumer account database 160stores information concerning consumers holding accounts at the issuingbank, such as account number, name, transaction information, etc. Thetransaction database 170 includes details of transactions executed byconsumers using credit cards issued by the issuing bank. Each of thesedatabases will be described in detail below.

Controller

FIG. 4 illustrates several elements of the controller 200. As describedabove, the controller 200 is used in one embodiment to generate billingstatements according to the present invention. The controller 200 mayalso be used to receive requests to review offers using offer pointers,to determine offers to present to consumers, and to transmit thedetermined offers to the consumer. The controller 200 also controls, inone embodiment, settlement of accounts between consumers, the issuingbank and subsidizing merchants.

The controller 200 includes a processor 205 connected to a communicationport 210. The communication port 210 is configured to transmit data toand to receive data from the issuing bank device 100 via a networkconnection, such as the World Wide Web, via an intermediate device, viaa dedicated connection, or via another connection. Similarly, thecommunication port 210 is configured to communicate with the consumerdevice 400 and the subsidizing merchant device 300. In one embodiment,the consumer device 400 communicates with the controller 200 via theWorld Wide Web and, in another embodiment, the consumer device 400communicates with the controller 200 via the telephone network. Thesubsidizing merchant device 300 may also communicate with controller 200via any type of network.

Also connected to the processor 205 are an input device 215, a displaydevice 220 and a printer 225. The input device 215 may be used by anentity operating the controller 200 to input data and instructions tothe controller 200. The input device 215 may also be used by consumersto transmit information needed to receive an offer from the controller200 in a case that the controller 200 is a device which is accessible toconsumers, such as a publicly-located kiosk. In this regard, the display220 may be used to display offers to a consumer for review. The printer225 may be used to generate hardcopies of billing statements inaccordance with the present invention, particularly in embodimentswherein the controller 200 generates the billing statements. The printer225 may also be used to generate reports from data collected by thecontroller 200. It should be noted that the input device 215, thedisplay 220 and the printer 225 may comprise any of the input devices,displays, or printers described above.

A storage device 230 is also connected to the processor 205, and storesdata and processor-executable process steps for the operation of thecontroller 200. The storage device 230 stores, in particular, a program235 of processor-executable process steps which may be executed by theprocessor 205 to provide functionality based on embodiments of theinvention in which the controller 200 is utilized. For example, in acase that offers are determined by the issuing bank device 100 andbilling statements are printed by the controller 200, the processor 205may execute the process steps of the program 235 to receive offerinformation from the issuing bank device 100, to generate offer pointersbased on the received offer information, to generate a billing statementincluding a description of a transaction and an offer pointer associatedwith the transaction, wherein the offer pointer includes informationthat may be used to review the offer information. Of course, since, asdescribed above, functions performed by the controller 200 depend uponthe embodiment in which the controller 200 is operated, the program 235may include process steps different from or in addition to thosedescribed above. The process steps of the program 235 may be stored inthe storage device 230 during its manufacture, may be downloaded from acompact disc or other computer-readable medium, or may be retrieved froma remote or local source through the communication port 210 embodied ina signal having the process steps encoded therein.

The storage device 230 also stores: i) a rules database 240 containingrules for generating offers, statement offers and/or offer pointersbased on transaction information; ii) an offer database 250 containingoffer details; iii) a central consumer database 260 including dataspecific to particular consumers; iv) a subsidizing merchant database270 including subsidy offer information; v) an offer tracking database280 for assisting in tracking the fulfillment and settlement of acceptedoffers; and vi) an issuing bank database 290 including data facilitatingcommunication and settlement with one or more issuing bank devices 100in communication with the controller 200. Details and use of eachdatabase are explained below.

Subsidizing Merchant Device

FIG. 5 illustrates a block diagram of several components of thesubsidizing merchant device 300. The subsidizing merchant device 300 isused in some embodiments to communicate subsidy offers to the controller200 and to track fulfillment of agreed-to obligations. The subsidizingmerchant device 300 may be operated by a single merchant and may storeoffers from only that merchant or from several different merchants. Inthis regard, the subsidizing merchant device 300 may be in communicationwith one or more merchant devices (not shown), through which individualmerchants may submit offers to the subsidizing merchant device 300.

As shown, the subsidizing merchant device 300 includes a processor 310for executing processor-executable process steps and for controllingcomponents in communication therewith. In this regard, a communicationport 320 is in communication with the processor 310. Data such assubsidy offer information may be transmitted to the controller 200 fromthe subsidizing merchant device 300 over the communication port 320.

Also connected to the processor 310 are an input device 330 and adisplay 340, which may used by personnel operating the subsidizingmerchant device 300 to enter subsidy offer information, consumerinformation or the like into the subsidizing merchant device 300. In oneembodiment, such subsidy offer information is transmitted to thecontroller 200 for storage in the offer database 250.

Storage device 350 is also in communication with the processor 310, andstores at least a program 360 of processor-executable process steps, aconsumer database 370 and a subsidy offer database 380. The processsteps of the program 360 may be executed by the processor 310 to receivea request from the controller 200 for subsidy offer information, toretrieve subsidy offer information from the subsidy offer database 380,and to transmit subsidy offer information to the controller 200. Inanother embodiment, the processor 310 executes the process steps of theprogram 360 to receive consumer information, and to determine subsidyoffer information from the subsidy offer database 380 to transmit basedon the consumer information and based on the information stored in theconsumer database 370. For example, the subsidizing merchant device 300may transmit one subsidy offer if it is indicated in the consumerdatabase 370 that the consumer to whom the offer will be presented is apreferred consumer, and a different subsidy offer to the consumer if itis indicated that the consumer is not a preferred consumer.

Consumer Device

FIG. 6 shows a block diagram of several components of the consumerdevice 400 according to one embodiment of the invention. The consumerdevice 400 may be used to view a billing statement, to request to reviewoffers using an offer pointer printed on a billing statement inassociation with a transaction, and/or to accept offers to reduce anamount owed associated with a transaction contained in a billingstatement.

The consumer device 400 may be any device or combination of devicesusable by a consumer to request offers for review using an offer pointerand to review offers presented in response. For example, the consumerdevice 400 may be one or more of a dedicated kiosk, a personal computer,a personal digital assistant, an Internet kiosk, a telephone, a set-topbox, a pager, a cellular phone, a payphone, a video game, an automatedteller machine, a slot machine, a watch, a vending machine, an in-carcommunication system, or any other device adapted to communicate withthe controller 200 over whatever communication media exist between thedevice 400 and the controller 200. As shown in FIG. 6, however, theconsumer device 400 is a device for communication with the controller200 over the World Wide Web.

More specifically, the consumer device 400 includes a processor 410 incommunication with a communication port 420. The communication port 420is configured to transmit data to the controller 200 via the World WideWeb over any suitable network or networks and to receive data therefrom.Also connected to the processor 410 are an input device 430 forreceiving data and instructions from a consumer, a display 440 fordisplaying data to the consumer, and a printer 430 for creating ahardcopy of data, such as of details of an offer which has been acceptedby the consumer.

A storage device 460 is also in communication with the processor 410,storing processor-executable process steps of an operating system 470and of a Web browser 480. The process steps of the operating system 470,such as the Palm® operating system, are executed by the processor 410 tocontrol basic operations of the consumer device 400. The process stepsof the Web browser 480 may be executed by the processor 410 to providecommunication between the consumer device 400 and a Web server executingwithin the controller 200 via the World Wide Web. Of course, dependingon the communication media disposed between the consumer device 400 andthe controller 200, other known processor-executable process steps orhardware may be needed for the consumer device 400 to communicate withthe controller 200. For example, in a case that a telephone number offerpointer is included in a billing statement in association with atransaction, the consumer device 400 need only be a device capable ofcommunicating over the telephone network.

Databases

The databases described in detail below are depicted in tabular formwith sample entries in the accompanying figures. In this regard, and aswill be understood by those skilled in the art, the schematicillustrations and accompanying descriptions of the databases presentedherein are merely intended to demonstrate operable systems forassociating and storing information which may be used in accordance withthe present invention. A number of other data structures may be employedbeside those suggested by the tables shown Similarly, the illustratedentries of the databases represent sample information only; thoseskilled in that art will understand that the number and content of theentries can be different from those illustrated.

Consumer Account Database

FIG. 7 illustrates a tabular representation of a portion of the consumeraccount database 160 according to one embodiment of the presentinvention. The consumer account database 160 is used to storeinformation regarding credit card accounts issued by the issuing bank.It should be noted that in a case that the issuing bank contracts with athird party to generate billing statements and/or to manage consumeraccounts, the consumer account database 160 as shown in FIG. 7 may belocated at and controlled by the third party.

Each record shown in the illustrated portion of the consumer accountdatabase 160 includes several fields, the fields specifying: i) aconsumer identifier 161 used to identify a consumer with whom a recordis associated; ii) a name 162 of the associated consumer; iii) anaddress 163 to which billing statements may be delivered and at whichthe consumer may be reached; iv) a credit card account number 164identifying a credit card account associated with the consumer; v) anamount owed by the consumer 165 for transactions posted to the creditcard account; vi) a minimum amount due 166 associated with the creditcard account; vii) a due date 167 by which the associated minimum amountdue 166 must be received by the issuing bank device 100; and viii) anamount owed by controller 168.

The consumer identifier 161 and the credit card account number 164 maybe generated by the issuing bank device 100 upon creating an account fora consumer. In this regard, a request or an application to open a creditaccount with the issuing bank may be received by the issuing bank device100, the application including a consumer name and address. Accordingly,the received name and address information is stored as a name 162 and anaddress 163, and a consumer identifier 161 and a credit card accountnumber 164 are generated and stored in associated fields of a record asshown in FIG. 7. It should be noted that a credit card account number164 may be used in place of a consumer identifier 161. However, in acase that a consumer has been issued more than one credit card account,it may be convenient to reference all the consumer's accounts using asingle consumer identifier 161.

In a case that the name 162 and the address 163 are obtained through awritten application form, the information may be entered into theconsumer account database 160 by an employee operating the input device125 of the issuing bank device 100. The associated consumer identifier161 and credit card account number 164 are preferably generated byprocess steps stored in the data storage device 140 and executed by theprocessor 110 or may also be input via the input device 125. Of course,other methods for receiving consumer information and for generatingassociated account information may be used in practicing the presentinvention.

The amount owed by the consumer 165 reflects a current balance of anassociated account. The amount owed by consumer 165 may reflect a totalof all charges posted to the associated account for which the consumerhas not yet paid the issuing bank. As described in detail below, theamount owed by consumer 165 may be less than the total of all chargesfor which the consumer has not yet paid in a case that the consumer hasaccepted an offer to reduce an amount owed according to the presentinvention. For example, in a case that unpaid charges associated with anaccount equal $238.76 but the consumer has accepted an offer to switchlong distance services in exchange for $40.00, the amount owed byconsumer 165 will reflect $198.76 ($238.76-$40.00).

The minimum amount due 166 and due date 167 associated with a recordindicate, respectively, a minimum amount which is due to the issuingbank device 100 and a date by which the minimum amount is due. Accordingto many types of credit card accounts, a consumer will be charged a latefee if the issuing bank device 100 does not receive the minimum amountdue 166 by the due date 167. As will be described in detail below, theminimum amount due 166 and the due date 167 each may be modified basedon acceptance of an offer by a consumer in accordance with the presentinvention. In one example, a minimum amount due 166 of $20.00 may bereduced to $15.00 in a case that a consumer accepts an offer to receivetwo free magazines. As previously described, such an offer may bepresented as a statement offer in association with a transaction on abilling statement or may be reviewed by a consumer using an offerpointer associated with a transaction on a billing statement.

The amount owed by controller 168 indicates, in one embodiment, anamount previously owed by a consumer but now owed to the issuing bankdevice 100 by the controller 200. Using the example given with respectto the amount owed by consumer 165, the $40.00 offered to the consumerin exchange for an agreement to switch long distance services issubtracted from the amount owed by consumer 165 and added to anassociated amount owed by controller 168.

Transaction Database

A tabular representation of a portion of the transaction database 170 isillustrated in FIG. 8. The transaction database 170 is used to recordtransaction information related to credit card accounts issued by theissuing bank. Each record of the transaction database 170 according tothe illustrated embodiment includes fields specifying: i) a transactionidentifier 171; ii) a credit card account number 172; iii) a transactiondescription 173; iv) a transaction date 174; v) an amount due 175; andvi) a merchant identifier 176.

As described above, the data stored in the transaction database 170 maybe received by the issuing bank device 100 from a credit cardclearinghouse, from another central collector and repository of creditcard transaction information, directly from merchants executingtransactions using credit cards issued by the issuing bank, directlyfrom consumers holding credit card accounts with the issuing bank, fromother sources, or from any combination of the above. In someembodiments, only transaction information relating to credit cardaccounts issued by the issuing bank device 100 is stored in thetransaction database 170.

The transaction identifier 171 may be assigned to a set of informationreceived by the issuing bank device 100 relating to one transaction.Accordingly, the transaction identifier 171 provides simple access toinformation associated with the transaction. The credit card accountnumber 172 identifies the credit card account used in the transaction,and the transaction description 173 provides a description of a subjecttransaction. The description 173 may identify a purchased product and/orservice to varying degrees of specificity. The transaction date 174 andthe amount due 175 reflect a date on which the transaction occurred anda corresponding amount which was charged to the credit card account.Finally, the merchant identifier 176 is a code identifying a merchantfrom whom the product and/or service was purchased.

In one embodiment, a billing statement corresponding to a particularcredit card account is generated by examining the transaction database170 to identify each record in which the credit card account isidentified in the credit card account number field 172 and which isassociated with a transaction date 174 falling within a range of dateswith which the billing statement is concerned. Transaction informationof each identified record may then be used in any of the mannersdescribed above to generate a billing statement including offer pointersand/or statement offers.

Rules Database

FIG. 9 shows a tabular representation of a portion of the rules database240 of the controller 200. The controller 200 may use the informationstored in the rules database 240 to determine a statement offer, anoffer pointer and/or an offer to associate with a transaction on abilling statement. The determination may, as described above, be basedon information corresponding to the transaction. Therefore, utilizationof the rules database 240 as described herein advantageously allows aconsumer to review offers deemed appropriate to particular transactions.In a case that the issuing bank device 100 or another device is used tomake such determinations, the rules database 240 may be stored in orotherwise accessible by that device.

The rules database 240 includes fields specifying: i) a rule identifier241; ii) an amount owed range 242; iii) a transaction category 243; iv)a merchant 244; and v) alternative payment information 245. In thepresent embodiment, the information stored in the rules database 240 maybe communicated to the controller 200 by any device in direct orindirect communication with the controller 200, such as the subsidizingmerchant device 300 or the input device 215 of the controller 200.

The rule identifier 241 of a given record is a code identifying a rulewhich is the subject of the record. The amount owed range 242 of arecord may be used to determine whether to associate alternative paymentinformation 245 of the record with a transaction on a billing statement.Specifically, in a case that an amount charged to an account due to atransaction is within an amount owed range 242, alternative paymentinformation 245 associated with the amount owed range 242 may beassociated with the transaction on a billing statement. Similarly, if atransaction satisfies the transaction category 243 and the merchant 244of a record in the rules database 240, the transaction may be associatedon a billing statement with alternative payment information 245associated with the record. It should be noted that, in someembodiments, alternative payment information 245 of a record may beassociated with a transaction on a billing statement even if the amountowed, transaction category and/or merchant associated with thetransaction do not comply exactly with respective values in the rulesdatabase 240.

It should be noted that the rules database 240 may store many othercriteria based on which alternative payment information 245 is selectedfor association with a transaction on a billing statement. For example,the rules database 240 may include fields specifying a payment due date,characteristics or ratings of the consumer associated with thetransaction, inventory levels of certain products, market economicindicators, subsidy payments paid by offer providers, or othercharacteristics. The rules database 240 may also include a field tospecify types of transaction descriptions, such as current charges,previous charges, finance charges, total amount owed, minimum amountdue, due date, etc. Using values such as these, alternative paymentinformation 245 may be explicitly associated with particular types oftransaction descriptions on a billing statement.

The alternative payment information 245 associated with a record mayinclude an offer, an offer pointer and/or a statement offer. Asdescribed above, the alternative payment information 245 may beassociated with a transaction on a billing statement if criteriaassociated with the alternative payment information 245 is satisfied bythe transaction. As shown, alternative payment information 245 includingan offer pointer may include a wildcard which is assigned a value priorto associating the offer pointer and the assigned value with atransaction on a billing statement. For example, the offer pointer maybe a URL with a CGI extension “amountowed=[amountowed]”. In this case,“[amountowed]” is substituted with an actual amount owed associated witha transaction prior to associating the URL and extension with thetransaction on a billing statement. An offer pointer included inalternative payment information 245 may refer to a particular offer ormay be used to access an offer which may change periodically due tovarious factors.

Alternative payment information 245 may also include an offer in theform of an expression of an agreement to perform an obligation alongwith a device such as a checkbox by which a consumer may indicateagreement. When associated with a transaction on a billing statement,such alternative payment information 245 comprises an offer to eliminatean amount owed associated with the transaction upon agreement to theobligation. In other embodiments, alternative payment information 245may include an offer using language such as “BOL will pay the entireminimum amount due this month if you agree to sign up for one year ofinternet service” along with a checkbox for indicating agreement.

It should be noted that a particular transaction may satisfy thecriteria of more than one rule in the rules database 240. In such acase, the alternative payment information 245 associated with eachsatisfied rule may be associated with the transaction on a billingstatement, or some system of arbitration may be employed to select oneor more of the alternative payment information 245. Such arbitration maybe based on qualities of the associated consumer, of the offersreferenced by the information 245, other factors or combinations of theforegoing.

Offer Database

A tabular representation of a portion of the offer database 250 is shownin FIG. 10. The offer database 250 stores information regarding offerspresented to consumers in accordance with the present invention. Theinformation stored in the offer database 250 may be received from one ormore subsidizing merchant devices 300, from the input device 215 of thecontroller 200 or from another device. The records in the offer database250 specify: i) an offer identifier 251 identifying an offer; ii) asubsidizing merchant identifier 252 identifying a merchant providing theoffer; iii) a benefit 253 included in the offer; iv) an obligation 254included in the offer and in exchange for which the associated benefitwill be provided and v) offer rules 255 specifying various conditions orinstructions relating to the offer. As described with respect to FIGS. 1and 2, the benefit 253, the obligation 254 and the offer rules 255 maytake many different forms in accordance with the present invention.

As an example of usage of the offer database 250, a consumer operatesthe consumer device 400 to accesses the controller 200 via a URL printedon a billing statement in association with a transaction. In a case thatthe URL references a “medium charge” Web page, the controller 200,through execution of the process steps by the processor 205 and based onthe offer rules 255, identifies offer identifier 251 999333O andpresents an offer offering the consumer $40.00 if the consumer switcheslong distance service to NCI within 30 days of accepting the offer.

In another example, a consumer may dial a telephone number printed on abilling statement in association with a transaction, and thereby accessa VR system provided by the controller 200. Upon accessing the system,the consumer enters a code printed adjacent to the telephone number onthe billing statement. The controller 200 decodes the data to determinethat the transaction included a purchase at a department store.Accordingly, the controller 200 identifies the offer identifier 251888445O and presents the consumer with a playback of an audio recordingoffering the consumer to pay an amount due associated with thetransaction up to $50.00 if the consumer makes at least a $50.00purchase at Max 6.sup.th Avenue department store within 14 days ofaccepting the offer. It should be noted that the controller 200 mayidentify that the consumer has made a department store purchase inseveral other ways. In one envisioned embodiment, the telephone numberwhich is associated with the transaction is associated only withtransactions involving a department store purchase. Accordingly, thecontroller 200 assumes that all requests received through the telephonenumber are associated with transactions including a department storepurchase. Alternatively, the consumer may select from a menu presentedby the VR system to indicate that the transaction included a departmentstore purchase.

A benefit 253 and an associated obligation 254 may also be used toassociate a transaction with a statement offer. Specifically, based onthe record associated with the offer identifier 251 777666O, a statementoffer such as “I agree to make a minimum $50.00 purchase at Max 6.sup.thAvenue within 14 days of accepting this offer” may be associated with atransaction associated with an amount owed of less than $50.00.

As described above with respect to the rules database 240, more than oneoffer of the offer database 250 may be presented to a consumer based onassociated offer rules 255. For example, in a case that a consumerrequests to review offers using an offer pointer which references a“medium charge” Web page, and a transaction associated with the offerpointer was a department store purchase, offers corresponding to offeridentifiers 251 999333O and 777666O may be presented. Alternatively,only one of the offers may be presented based on an arbitration systemsuch as that described above with respect to the rules database 240.

Central Consumer Database

FIG. 11 shows a tabular representation of a portion of the centralconsumer database 260 of the controller 200. The central consumerdatabase 260 is used to store consumer-specific data which may be usedto determine statement offers and offer pointers to associate with atransaction on a billing statement and/or offers to present toconsumers. Each record of the central consumer database 260 specifies:i) a consumer identifier 261 identifying a consumer who is the subjectof the record; ii) a name 262 of the consumer; iii) credit card accountnumbers 263 associated with the consumer; iv) an acceptance percentage264 associated with the consumer; and v) a fraud flag 265.

The credit card account numbers 263 associated with a consumer in thecentral consumer database 260 may reflect credit card accountsmaintained by the issuing bank device 100 or by other issuing bankdevices operated by other issuing banks. Such a scenario may occur in acase where the controller 200 provides functionality according to theinvention for several different issuing banks.

The acceptance percentage 264 reflects a percentage of offers which areaccepted by the consumer who is the subject of the record, and the fraudflag 265 indicates whether the consumer poses some type of risk orunreliability. The acceptance percentage 264 may reflect a percentage oftotal offers presented to the consumer, as statement offers or using anoffer pointer, which are accepted by the consumer, a number of acceptedoffers as a percentage of billing statements transmitted to theconsumer, or some other percentage reflective of accepted offers.

During use, a consumer associated with a low acceptance percentage 264may be presented with an offer pointer specific to consumers having alow acceptance percentage 264. Such an offer pointer may reference a Webpage including offers which are more enticing than those accessed usingan offer pointer presented to consumers having a higher acceptancepercentage 264. Similarly, subsidizing merchants may specify, throughoffer rules 255 stored in the offer database 250, that certain offersshould not be provided to consumers associated with a fraud flag 265 of“yes”.

Of course, many other types of information may be stored in the centralconsumer database 260 based on which statement offers, offers and/oroffer pointers are presented. For example, stored in association witheach consumer identifier 261 may be a rating such as “gold”, “silver”,“bronze”, and/or the consumer's credit rating.

Subsidizing Merchant Database

A tabular representation of a portion of the subsidizing merchantdatabase 270 is shown in FIG. 12. The database 270 is used to manageaccounts between the controller 200 and the subsidizing merchant device300. For each subsidizing merchant reflected in the subsidizing merchantdatabase 270, the database 270 includes: i) a subsidizing merchantidentifier 271; ii) a subsidizing merchant name/description 272; iii) aremaining budget 273; and iv) an amount owed by merchant 274. Theinformation stored in the subsidizing merchant database 270 may bereceived by the controller 200 from the subsidizing merchant device 300,from several subsidizing merchant devices, and/or from the input device215 of the controller 200.

The subsidizing merchant identifier 271 uniquely identifies a particularmerchant, and the subsidizing merchant name/description 272 provides thename of the merchant and a description of the products and/or servicessold by the merchant. The remaining budget 273 reflects the availabilityof subsidy offers from the merchant. For example, a subsidizing merchantmay provide offers to reduce an account balance by an amount owed of upto $50.00 if a consumer registers for one year of Internet access. Eachtime such an offer is accepted by a consumer, the amount of thereduction is added to the amount owed by merchant 274 associated withthe merchant, such as the subsidizing merchant identified by thesubsidizing merchant identifier 271 8484S. Accordingly, the associatedremaining budget 273 is reduced by the amount of the reduction.

Offer Tracking Database

FIG. 13 illustrates a tabular representation of a portion of the offertracking database 280 stored in the storage device 230 of the controller200. The offer tracking database 280 is used to track the status ofoffers accepted according to the present invention. As such, the offertracking database 280 may be used to ensure that each party to a processaccording to the present invention is correctly compensated in responseto consumer performance of an agreed-to obligation.

The offer tracking database 280 includes fields specifying: i) anaccepted offer identifier 281 which identifies the accepted offer towhich the record corresponds; ii) a subsidy amount 282 which is paid tothe issuing bank device 100 to subsidize the reduction of an amount owedassociated with a transaction on a billing statement; and iii) a status283 specifying a status of various tasks required to settle and processan accepted offer according to the invention.

As an example of usage of the offer tracking database 280, the recordidentified by the accepted offer identifier 281 525252AO reflects anoffer which was accepted by a consumer to provide $30.00 toward anamount owed on a credit card account associated with the consumer. Asshown by the status field 283, the consumer has fulfilled an agreed-toobligation corresponding to the offer, the issuing bank device 100 waspaid the $30.00 subsidy amount by the controller 200, and the controller200 was paid, most likely by the entity which received the benefit ofthe fulfilled obligation, such as the subsidizing merchant device 300.Further details and examples of settlement according to embodiments ofthe present invention are set forth below.

Issuing Bank Database

FIG. 14 illustrates a tabular representation of a portion of the issuingbank database 290. The issuing bank database 290 is used to track anaccount between the controller 200 and issuing bank devices with whichthe controller 200 is in communication. Each record of the issuing bankdatabase 290 includes: i) a bank identifier 291; ii) a bank name 292;and iii) an amount owed to bank 293.

As described above, the controller 200 may notify the issuing bankdevice 100 that a total amount owed on an account maintained by theissuing bank device 100 should be reduced in view of an accepted offer.In some embodiments, the controller 200 reimburses the issuing bankdevice 100 an amount roughly equal to the amount by which the totalamount owed was reduced. However, instead of reimbursing the issuingbank device 100 each time a consumer accepts an offer, amounts owed tothe issuing bank device 100 may be tracked in the issuing bank database290 and paid periodically.

Consumer Database

Shown in FIG. 15 is a tabular representation of a portion of theconsumer database 370 stored in the subsidizing merchant device 300according to one embodiment. The subsidizing merchant device 300 mayutilize the consumer database 370 in order to determine a particularsubsidy offer to present to a consumer. The data stored in the consumerdatabase 370 may be received from the input device 330 of thesubsidizing merchant device 300 and/or from various merchant devices incommunication with the subsidizing merchant device 300, with one or moreof the various merchant devices being operated by different merchants.

Each record in the consumer database 370 specifies: i) a consumeridentifier 371 identifying a unique consumer; ii) a name 372 of theconsumer; iii) an address 373 of the consumer; iv) a consumer rating374; and v) demographic information 375 corresponding to the consumer.

In some embodiments of the present invention, a consumer uses theconsumer device 400 and an offer pointer printed on a billing statementin association with a transaction to request information from thecontroller 200. In response, the controller 200 requests an offer fromthe subsidizing merchant device 300 and transmits the consumer'sidentity. The subsidizing merchant device 300 then evaluates informationcorresponding to the consumer stored in the consumer database 370 anddetermines appropriate offers based on the information. The offers aretransmitted to the controller 200 and are thereafter presented to andreviewed by the consumer. As described with respect to the centralconsumer database 260, many types of consumer information may be storedin the consumer database 370 and used to determine appropriate offers toprovide. For example, the consumer rating 374 may take into account realor estimated profits made from the consumer, the frequency with whichthe consumer transacts with the merchant, the number of friends theconsumer brings to the merchant, etc.

Subsidy Offer Database

FIG. 16 illustrates a tabular representation of a portion of the subsidyoffer database 380 according to one embodiment of the present invention.The subsidy offer database 380 is used, in one embodiment, to storeinformation regarding subsidy offers provided by a merchant operatingthe subsidizing merchant device 300, and to select and transmitappropriate subsidy offer information to the controller 200 uponreceiving a request from the controller 200 to do so. The subsidy offerinformation may be input to the subsidy offer database 380 through theinput device 330 of the subsidizing merchant device 300, or may bereceived from other devices.

Each record of the subsidy offer database includes: i) a subsidy offeridentifier 382; ii) a benefit 384; iii) an obligation 386; and iv)subsidy offer rules 388. As shown in FIG. 16, the fields of the subsidyoffer database 380 include information similar to that included incorresponding fields of the offer database 250. However, in theillustrated embodiment, each record reflects a subsidy offer provided bya same merchant.

Of course, the subsidy offer database 300 may store informationregarding subsidy offers provided by several merchants. In this case,the stored subsidy offer information may be received from devicesoperated by the several merchants. Also in such a case, it may bebeneficial to include a field in each record identifying the merchantproviding the subsidy offer represented by the record.

Processes

FIG. 17 is a flow diagram of process steps 1700 according to oneembodiment of the present invention. Briefly, the FIG. 17 process stepsinclude steps to generate a billing statement including a description ofa transaction and an offer pointer associated with the transaction,wherein the offer pointer includes information that may be used toreview an offer. In a case that the controller 200 performs the processsteps 1700, the process steps 1700 may be embodied in hardware withinthe controller 200, in processor-executable process steps stored on acomputer-readable medium such as the data storage device 230 andexecuted by the processor 205, in processor-executable process stepsencoded in an electronic signal received by the controller 200 andexecuted by the processor 205, or in any combination thereof. It shouldbe noted that the process steps 1700 may be, wholly or in part, storedin and/or executed by elements of the issuing bank device 100, thesubsidizing merchant device 300 or any another suitable device.

The process steps 1700 are described below in the context of a specificexample according to one embodiment of the invention. In this example, aconsumer executes a transaction to purchase a toothbrush at Jack's DimeStore for $1.10. The consumer executes the transaction by presenting acredit card issued by the issuing bank device 100 to the merchant. Themerchant passes a magnetic strip located on the credit card through acredit authorization terminal to read an associated credit card accountnumber therefrom. The terminal associates the account number (e.g. 55556666 7777 8888) with the cost of the product ($1.10), a description ofthe product (toothbrush), the identity of the merchant (Jack's DimeStore), the current date (e.g. Mar. 29, 2003), and a merchant identifieridentifying the merchant (e.g. 7777M). This associated transactioninformation is transmitted to a credit card clearinghouse, from which itis routed to the issuing bank device 100 based on the account number. Inthis regard, the credit card clearinghouse maintains a database ofcredit card numbers and associated issuing banks. By matching thereceived account number to an entry in the database, the credit cardclearinghouse determines to which issuing bank device 100 thetransaction information should be transmitted. Once received by theissuing bank device 100, the transaction information is assigned atransaction identifier and is stored in association with the transactionidentifier in the transaction database 170. As shown in FIG. 8, thetransaction identifier 171 555555T identifies the transactioninformation of the present example.

In step S1702, the controller 200 receives the transaction informationfrom the issuing bank device 100 through the communication port 210.Next, in step S1704, the controller 200 uses the rules database 240 todetermine an offer pointer based on the transaction information.According to the rules database of FIG. 9, the received transactioninformation satisfies the amount owed range 242, the transactioncategory 243 and the merchant 244 associated with the rules identifiedby rule identifiers 241 555R and 666R. However, in this example, thealternative payment information 245 associated with the rule identifier241 555R is determined as an offer pointer only if the receivedtransaction information fails to satisfy the criteria of any other rule.Accordingly, the offer pointer determined in step S1704 is thealternative payment information 245 associated with the rule identifier666R, or “http://www.erasecharges.com/amountowed=1.10”.

A billing statement is generated in step S1706, the billing statementassociating the executed transaction with the determined offer pointer.Billing statement 1 of FIG. 1 represents a billing statement generatedin step S1706 according to the present example. The billing statement 1is generated by creating an electronic document formatted as shown inFIG. 1 and by printing a hardcopy of the document using the printer 225.The billing statement 1 associates the transaction with the determinedoffer pointer by locating the determined offer pointer on a same line ofthe billing statement 1 as the transaction date 15, the description 20and the amount owed 25 corresponding to the transaction. The hardcopy ofthe billing statement 1 is transmitted to the consumer in step S1708 bypost, using the name 162 and the address 163 associated with thereceived credit card account number 164 in the consumer account database160.

In step S1710, the controller 200 receives a request to review an offerbased on the offer pointer. The request is received in the form of arequest for a Web page corresponding to the offer pointer transmittedfrom the consumer device 400. More specifically, prior to step 1710, theconsumer to whom the statement 1 was transmitted enters the offerpointer into a Web browser provided by the consumer device 400 throughexecution of the Web browser process steps 480. The Web browser thentransmits a command to retrieve an associated Web page over the WorldWide Web, from which the command is received by a corresponding Webserver provided by the controller 200.

An offer is determined by the controller 200 in step S1712 using theoffer database 250. More specifically, the offer rules 255 of each offerreflected in the database 250 are evaluated to determine which reflectedoffer should be presented to the consumer. As shown in FIG. 10, only theoffer identified by the offer identifier 251 222111O is associated withrules that are satisfied by the present transaction. Accordingly, it isdetermined in step S1712 to transmit the offer identified by the offeridentifier 251 222111O to the consumer.

The offer is transmitted to the consumer in step S1712. Specifically, aWeb page including the offer is sent to the Web browser from which therequest was received in step S1710. The Web page may include a statementsuch as “Your charge of $1.10 will be eliminated if you agree to receivetwo free issues of Big Top magazine”, and selectable icons labeled “IAgree” and “I Don't Agree”. Accordingly, if the consumer indicatesagreement by selecting the “I Agree” icon, settlement proceeds accordingto one of the embodiments described above.

It should be noted that an offer may be determined prior todetermination of an offer pointer, with the offer pointer thendetermined so as to provide a consumer with access to the determinedoffer. According to one embodiment, such an offer is determined based onthe received transaction information prior to step S1704. Therefore, theoffer then determined in step S1712 is the same as the offer determinedprior to step S1704.

By virtue of the foregoing process steps, it is likely that the offereventually reviewed will be thoroughly considered. Moreover, thecomplexity of the offer and the number of offers are not strictlylimited by space constraints imposed by the billing statement. The offermay also be more personalized, reflective of real-time conditions suchas inventory or product demand, and/or tailored to the characteristicsor needs of the consumer, the seller, or a third party. Consequently,the offer may be more likely to be accepted than an offer presentedusing conventional methods.

FIG. 18 is a flow diagram of process steps 1800 according to oneembodiment of the present invention. Briefly, the FIG. 18 process stepsinclude steps to generate a billing statement including a description ofa transaction and an offer associated with the transaction, wherein theoffer is an offer to reduce an amount owed associated with thetransaction. In a case that the controller 200 performs the processsteps 1800, the process steps 1800 may be embodied in hardware withinthe controller 200, in processor-executable process steps stored on acomputer-readable medium such as the data storage device 230 andexecuted by the processor 205, in processor-executable process stepsencoded in an electronic signal received by the controller 200 andexecuted by the processor 205, or in any combination thereof. It shouldbe noted that the process steps 1700 may be, wholly or in part, storedin and/or executed by elements of the issuing bank device 100, thesubsidizing merchant device 300 or another suitable device.

Initially, flow begins at step S1802, wherein the controller 200receives from the issuing bank device 100 information regarding atransaction executed by a consumer using a credit card account. In thisexample, the information includes a minimum due ($30.00) correspondingto the credit card account. The minimum due is considered a descriptionof a transaction, with the transaction including all previoustransactions based on which the minimum due is calculated.

A statement offer is determined in step S1804 based on the receivedinformation. The statement offer is determined using the rules database240, particularly by determining alternative payment information 245associated with an amount owed range 242, a transaction category 243 anda merchant 244 which correspond to the received information.Accordingly, the alternative payment information 245 “I agree toregister for 1 year of BOL Internet access” is determined as a statementoffer in step S1804 based on the received minimum due of $30.00.

Next, in step S1806, a billing statement is generated which associatesthe transaction described by the minimum due with the determinedstatement offer. FIG. 1 illustrates such an association. As describedwith respect to FIG. 1, the statement offer as shown on the billingstatement 1 is an implied offer to eliminate the minimum due in exchangefor a consumer's agreement to perform the described obligation.According to this example, the statement offer offers to pay the $30.00minimum due if the consumer agrees to register for 1 year of Internetaccess with BOL.

The generated billing statement is transmitted to the consumer in stepS1808 in response to a request to view a billing statement received fromthe consumer device 400. In more detail, the consumer operates a Webbrowser provided by the consumer device 400 to review a billingstatement, and the controller 200 provides a Web server which transmitsa generated credit card billing statement to the consumer over the WorldWide Web so that the consumer is able to review an electronic version ofhis billing statement using the Web browser.

The consumer then operates the consumer device 400 to place a check markin the checkbox displayed beside the statement offer, thereby indicatingacceptance of the statement offer. The acceptance is then transmittedover the World Wide Web, from which it is received by the controller 200in step S1810. Next, the controller 200 calculates a new total amountowed associated with the credit card account. The new total amount owedis $30.00 less than the total amount owed shown in FIG. 1, or $671.35.The new amount owed is transmitted to the consumer in step S1812 using aWeb page generated by the controller 200.

Additional Embodiments

The following are several examples of additional embodiments of thepresent invention. These examples do not constitute all possibleembodiments, and those skilled in the art will understand that thepresent invention is amenable to many other embodiments. Those skilledin the art will understand how to make any changes, if necessary, to theabove-described system to accommodate these and other embodiments andapplications.

In one embodiment, a consumer may choose a transaction on a billingstatement to associate with an offer pointer or an offer. Such anembodiment allows a consumer to choose a transaction to which a benefitof an accepted offer will be applied.

In determining offers to present to consumers, the controller 200 orsubsidizing merchant device 300 may calculate a value of the consumer tothe subsidizing merchant. The value calculation may be based upon anyinformation about the consumer, and may be based on comparisons to otherconsumers with similar characteristics.

An offer may also be determined based on credit history of a consumer.For example, a consumer who owes a large amount or who has demonstrateddifficulty in paying off prior balances may be given offers whoseobligation components are more difficult to meet than those of a typicaloffer. In this regard, a consumer who frequently revolves creditbalances may be considered to have difficulty in paying off balances.

The controller 200, or some other party, may maintain a list of offerspreviously accepted by a consumer. Using the list, the controller 200may prevent a consumer from accepting offers which conflict with theintent of previously-accepted offers. For example, a consumer who haspreviously accepted an offer requiring him to switch to a long distanceservice provider may be prevented from accepting an offer requiring himto switch to another long distance service provider.

In some embodiments, the consumer accepts and performs an obligationbenefiting the controller 200 (or the issuing bank device 100) ratherthan any subsidizing merchant. Once the consumer has fulfilled theobligation, the controller 200 may later resell resulting work productto another party, such as a merchant. For example, in a case that theobligation requires the consumer to answer survey questions, thecontroller may sell the answers to the survey questions to variousmerchants.

In one embodiment of settlement according to the invention, the issuingbank device 100 charges the controller 200 for a total amount owed undera credit card account. In turn, the controller 200 charges the consumerfor any amounts owed that are not eliminated through the acceptance ofoffers according to the invention.

An offer pointer may reference a Web page having a search feature. Theconsumer may use the feature to enter some criteria for narrowing thetypes of offers presented to him. For example, the consumer might searchfor offers whose obligation components involve visiting resorts.

Although the present invention has been described with respect toparticular embodiments, those skilled in the art will note that varioussubstitutions and modifications may be made to those embodiments withoutdeparting from the spirit and scope of the present invention.

1. A system, comprising: a memory storing information about customeraccounts, wherein the information comprises transaction history and anaccount identifier; and a processor configured for receiving informationabout a transaction between a consumer and a merchant; generating anoffer for the consumer based, at least in part, on a location of theconsumer and/or the merchant; and transmitting the offer electronicallyto a consumer device.
 2. The system of claim 1, wherein the offer isbased on characteristics or ratings of the consumer.
 3. The system ofclaim 1, wherein the offer is based on the transaction.
 4. The system ofclaim 1, wherein the offer is based on consumer purchase history.
 5. Thesystem of claim 1, wherein the offer is based on previously acceptedoffers or an acceptance percentage.
 6. The system of claim 1, whereinthe offer is based on a time or date of the transaction.
 7. The systemof claim 1, wherein the offer is based on relationships of the consumerwith other consumers.
 8. The system of claim 1, wherein the offer isbased on inventory.
 9. The system of claim 1, wherein the offer is basedon market conditions.
 10. The system of claim 1, wherein the offer ispresented on an electronic billing statement or invoice on a consumerdevice.
 11. The system of claim 1, wherein the offer is reviewed oraccepted by the consumer on a television channel.
 12. The system ofclaim 1, wherein the offer comprises the consumer making a predeterminednumber of referrals.
 13. The system of claim 1, wherein the offercomprises the consumer answering an online survey.
 14. The system ofclaim 1, wherein the offer provides the consumer an option of postponinga payment due date.
 15. The system of claim 1, wherein the offerprovides the consumer an option of reducing a minimum payment due. 16.The system of claim 1, wherein the offer provides the consumer an optionto extend a grace period.
 17. The system of claim 1, wherein the offercomprises an instantaneous rebate at a point of sale on the consumerdevice.
 18. The system of claim 1, wherein the offer is presented on astatement for a product or service for which the consumer is billed,either before or after a purchase
 19. The system of claim 1, wherein theprocessor further assigns a monetary value to a non-strictly monetarybenefit.
 20. The system of claim 1, where the offer differs forpreferred consumers.
 21. The system of claim 1, wherein the offer issent to, reviewed, and/or accepted on a set-top box, a kiosk, an ATM, anin-car display, a video game, or a vending machine.
 22. The system ofclaim 1, wherein a single consumer identifier is used to referencemultiple accounts of the consumer.
 23. The system of claim 1, whereinthe processor further stores a consumer rating with an associatedconsumer account.
 24. The system of claim 1, wherein an offer is basedon a rating of the consumer, wherein the rating is based on how manyfriends the consumer brings to the merchant.
 25. A non-transitorymachine-readable medium comprising a plurality of machine-readableinstructions which when executed by one or more processors of a serverare adapted to cause the server to perform a method comprising:receiving information about a transaction between a consumer and amerchant; generating an offer for the consumer based, at least in part,on a location of the consumer and/or the merchant; and transmitting theoffer electronically to a consumer device.
 26. A method, comprising:receiving, electronically by a processor of a service provider,information about a transaction between a consumer and a merchant;generating, electronically by the processor, an offer for the consumerbased, at least in part, on a location of the consumer and/or themerchant; and transmitting, electronically by the processor, the offerelectronically to a consumer device.